Lunnon Metals Limited · ASX:LM8
Lunnon Metals — Investor Presentation (January 2024)
28 slides from Lunnon Metals's investor presentation, Jan 24, 2024
Slide 1: Investor Presentation
24 January 2024 INVESTOR PRESENTATION In accordance with Lunnon Metals Limited's (ASX:LM8) Shareholder Communications Policy, enclosed is a copy of the Investor Presentation which will be used for upcoming meetings with investors, brokers and analysts. For personal use only This release has been app
Slide 2: Lunnon Metals (LM8) Investor Presentation January 2024
✓ This slide is 100% editable. Lunnon Metals (LM8) For personal use only Adapt it to your needs and Investor Presentation capture your audience’s attention. ✓ This slide is 100% editable. Adapt it to your needs and capture your audience’s Edmund Ainscough attention. Hayden Bartrop January 2024
Slide 3: Important Notice & Disclaimer
Important Notice & Disclaimer 2 This Presentation has been prepared by employees of Lunnon Metals Ltd (“Lunnon”, “LM8” or “the Company”) on its behalf and is a summary only, and contains summary information about Lunnon and its activities, which is current as at the date of this Presentation (unless
Slide 4: Kambalda premium location, strong balance sheet, high-grade Baker deposit
Kambalda $27M Cash 1 For personal use only Premium location Strong balance sheet Unrivalled discovery record Maintain discovery Significant High-grade Baker deposit Mineral Resource nickel sulphides short lead time 109,100 t of nickel metal 2 Resilient project economics Low pre-production capital Pr
Slide 5: Filling the Void: Next go-to Australian nickel play
Filling the Void: Next “go to” Australian nickel play 4 Market Capitalisation of ASX Nickel Companies – 22/01/24* Premium location in Kambalda For personal use only 2,500 2,443 High grade nickel sulphides 2023 - Nickel Consolidation OZ Minerals (West Musgrave), Western 2,000 Areas and Mincor Uncontr
Slide 6: Nickel price (sentiment)
Nickel price (sentiment) 5 Ni price in US$/t or A$/t not significantly For personal use only different to June 2021 (IPO) Sentiment most definitely is! Enterprise Value 16/06/2021 (IPO) $28M 23/01/24 now $34M EV/t Ni metal1 Source/data: Ni price http://www.worldbank.org/en/research/commodity-markets
Slide 7: Strategic Position – Prolific Kambalda Nickel Belt
Strategic Position – Prolific Kambalda Nickel Belt 6 N Kambalda renowned for: • High-grade, high-quality concentrate For personal use only 10km 18,500t Ni metal • Low deleterious elements eg. arsenic @ 1.7%* • High Fe:MgO ratios desired by smelters • 1.6Mt nickel mined to date^ Kambalda LM8 only ASX
Slide 8: Unrivalled: Kambalda Nickel District
Unrivalled: Kambalda Nickel District 7 Past Nickel Production^: >440,000t nickel metal mined^ after Pre-WMC sale vs Total Life of Mine to date exit by WMC use only 4.3% 4.1% IGO – Long Shaft 3.9% 342 203 25% of all metal mined 3.7% MCR – Widgie/Nth Kamb For personal 3.5% Ni % 3.3% PAN – Lanfranchi 4
Slide 9: Kambalda Dome: Land of the Giants
Kambalda Dome: “Land of the Giants” 8 Northern area mined ~continuously for >50 years For personal use only (now part of Wyloo) Significant production gap between north & south Southern – mines closed over 35 years ago, >10 years before WMC’s exit Dormant inside Gold Fields for close to 20 years ^ k
Slide 10: Silver Lake: Long South Gap
Silver Lake : Long South Gap 9 Kambalda nickel channels For personal use only famous for their long plunge extent Long South “Gap” is… • Down plunge of one of Kambalda’s great mines – Long Shaft, and • >340kt Ni metal^ mined from Long & Victor channels • In one of Australia’s most prolific nickel be
Slide 11: Silver Lake: Long South Gap – 2D and 3D seismic surveys
Silver Lake : Long South Gap – 2D and 3D seismic surveys 10 Thick succession of ultramafic For personal use only Significant shear/fault recorded ✓ Located potential channel ▪ Now use 3D to refine target ▪ Goal to locate Ni sulphide accumulation Refer to ASX announcement 20/11/2023 & 22/01/2024
Slide 12: Baker-Foster: 3.0Mt @ 3.0%Ni (90,600t Ni)
Baker-Foster: 3.0Mt @ 3.0%Ni (90,600t Ni)* 11 Significant existing infrastructure = low capital cost For personal use only Discovery success ✓ >77km drilling to date ✓ Baker deposit: discovery to Ore Reserve in ~ 2 years ✓ 70,100t* Ni metal added @ $0.24/lb Ni^ De-risking ▪ Existing Mining Leases, m
Slide 13: De-risking Baker
De-risking Baker ~25km of drilling For personal use only 12 Refer to ASX announcement 22/01/2024
Slide 14: Baker PFS: Grade underpins robust project
Baker PFS: Grade underpins robust project = “Sprint Capacity” 13 Pre-Production Capex: $18.6M Payback: 0.7 Years* At May 2023 prices For personal use only Sensitivity +/-10% NPV8 Ni price or grade: +/-$35M Pre-tax: $164M Operating Cost: +/-$16M Post tax: $121M Pre-prod capex: +/-$2M Operating Costs
Slide 15: Surface Infrastructure and pre-development
Surface Infrastructure and pre-development 14 Extensive existing infrastructure • Waste and RoM pads from West Idough Pit For personal use only • Access and Haul roads • Powerlines (11kv) • Dewatering corridor • Mine offices & workshop • Fuel storage facility • Ablutions etc Advanced Project Approva
Slide 16: Gold in the Foster belt
1^ Gold in the Foster belt 15 • St Ives/Kambalda is a world-class gold camp in its own right For personal use only • Over 15Moz of past gold production since 1982* • Foster-Cooee belt historically, focus was nickel for WMC Resources • Victory-Defiance (to immediate north) and Argo-Hamlet-Athena (to
Slide 17: News Flow
News Flow 16 • Foster South MRE update with metallurgical DD holes For personal use only • Historical Core Program first-time MRE Foster #40 to #60 surfaces • 3D seismic analysis and targeting outcomes • Gold targets at Foster • Update to Baker MRE after drill-out of Indicated • Pending above Foster
Slide 18: Kambalda's Amazing Potential
Kambalda’s Amazing Potential 17 Kambalda, still a World-Class Ni province ✓ Globally significant nickel camp For personal use only ✓ Unrivalled record of discovery ✓ Excellent local infrastructure & services ✓ Nickel supply chain certainty in Tier One jurisdiction Right assets, right location ✓ 4 hi
Slide 19: Appendices
✓ This slide is 100% editable. For personal use only Adapt it to your needs and capture your audience’s attention. ✓ This slide is 100% editable. Appendices Adapt it to your needs and capture your audience’s attention.
Slide 20: Lunnon Metals Overview
Lunnon Metals Overview 19 Liam Twigger Non-Executive Chair Edmund Ainscough Managing Director Corporate structure (ASX: LM8) close on 23 Jan 2024 only 217.1m $0.28 ~$60m For personal useBoard Ian Junk Deborah Lord Shares on issue Market cap Share price Non-Executive Director Non-Executive Director A
Slide 21: Uses of Nickel
Uses of Nickel 20 Nickel: Central to Decarbonisation • For personal use only Nickel possesses physical and chemical properties which make it a valuable alloying material, particularly with chromium and other metals, to produce stainless steel and heat-resisting steel. • Nickel is used in solar (1.3k
Slide 22: Important Notice – Competent Persons Statement
Important Notice 21 T h e i n f o r m a t i o n i n t h i s r e p o r t t h a t r e l a t e s t o n i c k e l a n d g o l d g e o l o g y , n i c k e l M i n e r a l R e s o u r c e s , E xp l o r a t i o n T a r g e t a n d Competent Persons E xp l o r a t i o n R e s u l t s , i s b a s e d o n ,
Slide 23: Mineral Resources and Ore Reserves Reporting
Mineral Resources and Ore Reserves Reporting 22 This presentation contains references to Lunnon’s Ore Reserves and Mineral Resources, which are shown in a detailed breakdown below. Mineral Resources* as at 15 January 2024 For personal use only * Mineral Resources are inclusive of Ore Reserves; total
Slide 24: Baker PFS Key Financial Assumptions
Baker PFS Key Financial Assumptions 23 Price or Rate Assumption Unit Assumption Value (as at 18 May 23) For personal use only Nickel Price1 US$/t 24,000 21,334 Copper Price1 US$/t 7,500 8,302 Cobalt Price1 US$/t 40,000 34,930 Platinum Price1 US$/oz 850 988 Palladium Price1 US$/oz 1,250 1,356 AUD:USD
Slide 25: Major Operating Costs
Major Operating MAJOR Costs OPERATING COSTS 24 FIRST PRINCIPLES, BENCHMARK & RFQ* APPROACH Unit Cost Total LOM Unit Cost For personal use only Item (A$/lb Ni contained A$ Million (A$/t Ore Mined) in concentrate)1 Mining 131.2 214 3.73 Processing (including Surface Haulage)2 46.1 75 1.31 General & Ad
Slide 26: PFS Financial Outcomes
PFS FINANCIAL PFS Financial Outcomes # OUTCOMES# 25 140,000 160,000 Measure Unit Outcome 120,000 140,000 Nickel Contained in Concentrate Ni t 15,970 120,000 For personal use only 100,000 Average Ni Sold Per Annum t Ni pa 4,100 Post tax Free Cash Flow (A$M) Cumulative Con Production (t) 100,000 Gross
Slide 27: Prior ASX Announcements
Prior ASX Announcements 26 This presentation contains references to Lunnon’s Exploration Results and previous announcements. The information in this presentation that relates to previous Exploration Results has been extracted from the following Lunnon ASX announcements, where full details including
Slide 28: Detailed Peer Data
Detailed Peer Data 27 Closing Market Shares on Price on Jurisdiction of Capitalisation Company ASX Code Nickel Type Development Stage Issue ASX Source of shares on issue# Assets ($M) For personal use only (A) 22/01/24 (A x B) (B) Nickel Industries Limited NIC Indonesia Nickel Laterite Operational 2,